Sainsbury’s have recently posted profit figures which show that they have regained a significant amount of market share after several years of poor performance compared with other supermarkets such as Tesco. The supermarket became known as largely catering to the middle-class and this was something that was not particularly good for business.
The Chief Executive of the company, Justin King, has recently said that the supermarket have managed to change this image and have become a store that has a universal appeal. Mr King commented, “It is possible to change people’s perception of the supermarket over a long time.
The fact that we were perceived as a middle-class supermarket was never correct but it is something we have worked very hard to change. We want to create products that appeal to people no matter what their personal budgets.”
In the final quarter of last year the sales of its basics range of products increased by 10 percent. Despite this, sales of its premium range increased even more markedly. The sales of the premium range went up significantly over Christmas, which is relatively normal, however the company was pleased to see that after this period the sales of these goods continued to improve.
Clive Black an analyst at Shore Capital has said, “The economy is proving a very challenging situation for supermarkets and Sainsbury’s have delivered very sound results considering this climate. The Brands Match promotion that the company has been offering has been a great success for them and this has worked very well for reducing the association people have of the supermarket with the middle classes.”
Another analyst has commented, “Sainsbury’s is now succeeding where Tesco is not. They are managing to offer good prices without damaging their respectable brand name.” On announcement of the results shares in the company climbed by around three percent.